Managing rental property in Georgia means following two bodies of rules at once: the state’s real estate licensing regime and the landlord-tenant statutes in Title 44 of the Official Code of Georgia Annotated. Georgia property management laws require a broker’s license for anyone who collects rent or leases property for someone else, mandate escrow accounts for security deposits, set out specific written notices before eviction, and expose landlords to triple damages for wrongfully withheld deposits. Federal fair housing, credit reporting, and service member statutes sit on top of all of it.
Who Needs a Real Estate License
Georgia treats property management performed for compensation as a brokerage activity. Under O.C.G.A. § 43-40-1, anyone who collects rent, negotiates leases, or manages property on behalf of another person for a fee must hold a valid real estate broker’s license.1FindLaw. Georgia Code Title 43 Professions and Businesses 43-40-1 – Definitions To qualify, an applicant must have held an active salesperson’s license for at least three of the preceding five years, complete 60 hours of approved broker-level coursework, and pass a state exam.2Georgia Real Estate Commission and Appraisers Board. Georgia Code 43-40-8 – Qualifications of Licensees Third-party management firms need both a firm license and a designated qualifying broker.
The Georgia Real Estate Commission can fine violators up to $1,000 per violation, capped at $5,000 in a single disciplinary proceeding.3Justia. Georgia Code 43-40-25 – Violations by Licensees, Schools, and Instructors
Exemptions From Licensing
Not every person involved with a rental unit needs a license. O.C.G.A. § 43-40-29 exempts owners managing their own property and full-time employees of a property owner. Individuals employed by a licensed broker to help with property management can also work without a personal license, but their duties have to be spelled out in a written agreement with the broker and are limited to tasks like showing rental units, accepting applications and rent payments, and providing broker-authorized information to tenants. These employees cannot negotiate lease terms on their own or make management decisions outside the broker’s written authorization.4Justia. Georgia Code 43-40-29 – Exceptions to Operation of Chapter
Trust Accounts for Client Funds
Licensed brokers who manage rentals must maintain designated trust or escrow accounts for client money. Georgia Rule 520-1-.08 requires that a broker’s rental trust account always hold enough to cover what is owed to each property owner, and security deposits kept in those accounts must be credited to the individual tenant. Brokers who own rental property themselves face a stricter rule: any security deposits they collect must sit in a designated trust account, and a surety bond is not an available substitute.5Cornell Law Institute. Georgia Regulation 520-1-.08 – Managing Trust Accounts
Commingling client funds with your operating account is one of the fastest paths to disciplinary action. Treat the trust account as untouchable for anything other than owner-authorized bills and deposit returns.
Required Disclosures Before Signing
Two written disclosures have to be in the tenant’s hands before a lease is executed.
Under O.C.G.A. § 44-7-20, if any part of the living space has flooded at least three times in the five years before the lease date, the owner or manager must tell the prospective tenant in writing.6Justia. Georgia Code 44-7-20 – Notification to Prospective Tenant of Property’s Propensity Toward Flooding Skipping this can give the tenant grounds to terminate the lease or bring misrepresentation claims.
For any residential building built before 1978, federal law requires a lead-based paint disclosure and the EPA’s informational pamphlet before the lease is signed.7United States Environmental Protection Agency. Lead-Based Paint Disclosure Rule (Section 1018 of Title X) The landlord must also disclose any known lead-based paint hazards and give the tenant 10 days to conduct an independent inspection if they want one.
Security Deposit Rules
Security deposits are where careless managers lose the most money. O.C.G.A. § 44-7-31 requires every deposit to sit in an escrow account at a state- or federally regulated bank, held in trust for the tenant, and the landlord has to tell the tenant in writing where the account is held.8Justia. Georgia Code 44-7-31 – Placement of Security Deposit in Trust in Escrow Account As an alternative, a landlord can post a surety bond with the clerk of the superior court for the total amount of deposits held or $50,000, whichever is less.9Justia. Georgia Code 44-7-32 – Surety Bond in Lieu of Escrow Account Georgia does not cap the amount you can charge as a deposit.
Move-In Inspection
Before collecting a deposit, the landlord must give the tenant a written list of every existing defect in the unit. Both parties sign, and the tenant keeps a copy. If the tenant disagrees with any item, they state their objections in writing.10Justia. Georgia Code 44-7-33 – Lists of Existing Defects and of Damages During Tenancy That signed list becomes conclusive evidence of the property’s condition at move-in.
Move-Out Inspection
After the tenant leaves, the landlord has three business days to inspect and prepare a list of damage with dollar amounts for each item. The tenant then has five business days to review the list and inspect the property themselves. If the tenant is present during the landlord’s inspection and both sign the damage list, it becomes conclusive evidence of the damage. Written objections are required if the tenant disputes any item.10Justia. Georgia Code 44-7-33 – Lists of Existing Defects and of Damages During Tenancy
Returning the Deposit
The landlord has 30 days after regaining possession to return the full deposit. If any portion is withheld, the tenant must receive a written statement listing the exact reasons and an itemized breakdown of the costs, along with a check for any remaining balance.11Justia. Georgia Code 44-7-34 – Return of Security Deposit Allowable deductions include unpaid rent, late fees, utility charges, pet fees, and repairs for damage beyond normal wear and tear.
Now the expensive part. Under O.C.G.A. § 44-7-35, a landlord who improperly withholds any part of a security deposit owes the tenant three times the amount wrongfully kept, plus reasonable attorney’s fees.12Justia. Georgia Code 44-7-35 – Remedies for Landlord’s Failure to Return Security Deposit The only escape from triple damages is proving the withholding was an unintentional, good-faith error despite reasonable procedures being in place. That is hard to argue if you never conducted a proper move-out inspection or your escrow account was not maintained correctly.
Fair Housing and Tenant Screening
The federal Fair Housing Act prohibits discrimination in advertising, screening, lease terms, and property access based on race, color, religion, sex, familial status, national origin, or disability.13Office of the Law Revision Counsel. 42 USC 3604 – Discrimination in the Sale or Rental of Housing Ads that say “no children,” describe an ideal tenant’s religion, or use coded phrases like “restricted community” violate the Act regardless of intent. Landlords must allow tenants with disabilities to make reasonable modifications to their units at the tenant’s expense and grant reasonable accommodations in rules and policies when needed. For multi-family buildings first occupied after March 1991, federal design standards require accessible common areas and certain adaptable features in ground-floor units.
As of May 2026, HUD issued guidance narrowing its enforcement approach for assistance animal requests: HUD will pursue Fair Housing Act complaints only for animals individually trained to perform specific disability-related tasks, aligning more closely with the ADA’s definition of a service animal. The underlying Fair Housing Act duty to evaluate disability-related requests was not repealed.
Adverse Action Notices
When you deny a rental application based in whole or in part on a consumer report, 15 U.S.C. § 1681m requires a written adverse action notice. It must include the name, address, and phone number of the consumer reporting agency, a statement that the agency did not make the decision, and notice of the applicant’s right to a free copy of the report and to dispute inaccuracies.14Office of the Law Revision Counsel. 15 USC 1681m – Duties of Users Taking Adverse Actions The same notice is required when a report causes you to charge a higher deposit, require a co-signer, or alter lease terms.
Repairs and Habitability
O.C.G.A. § 44-7-13 makes landlords responsible for keeping the premises in repair throughout the tenancy.15Justia. Georgia Code 44-7-13 – Landlord’s Duties as to Repairs and Improvements That covers structural elements like roofing and foundations along with essential systems: plumbing, electrical, and heating. Managers should respond to repair requests within a reasonable time. Ignoring them exposes the landlord to claims for the diminished rental value of the unit during the period the defect went unfixed.
One point where Georgia differs from many states: there is no statutory “repair and deduct” remedy here. A tenant cannot lawfully hire a plumber and subtract the cost from rent under the state’s repair statute. Tenant recourse for unaddressed repairs runs through the courts, as damages or, in serious cases, constructive eviction.
Late Fees and Lease Terms
Georgia does not cap late fees on overdue rent. The amount, the grace period, and the trigger are governed by the lease itself. Courts may refuse to enforce a fee that is clearly disproportionate to the landlord’s actual damages from late payment, so specify the fee amount, when it accrues, and whether it compounds. Oral or vague arrangements rarely survive challenge.
Service Member Protections
Two federal rules under the Servicemembers Civil Relief Act (SCRA) come up regularly. A service member who receives permanent change-of-station or deployment orders for 90 days or more can terminate a residential lease early without penalty by delivering written notice and a copy of the orders; the lease ends 30 days after the next rent payment is due following delivery.16Office of the Law Revision Counsel. 50 USC 3955 – Termination of Residential or Motor Vehicle Leases
Second, a landlord cannot evict a service member or their dependents during active military service without a court order, provided monthly rent falls below the SCRA’s adjusted threshold (originally $2,400 in 2003, adjusted annually for inflation).17Office of the Law Revision Counsel. 50 USC 3951 – Evictions and Distress If military service materially affects the tenant’s ability to pay, the court must stay the eviction for at least 90 days. Knowingly evicting a protected service member without a court order is a federal misdemeanor.
How Evictions Work in Georgia
Georgia requires a formal demand for possession before any eviction filing. Under O.C.G.A. § 44-7-50, the owner or manager must demand that the tenant surrender the property. This applies whether the tenant has overstayed the lease, is holding over as a tenant at will, or has broken the lease.18Justia. Georgia Code 44-7-50 – Demand for Possession
For nonpayment of rent, there is an added step: a written notice giving the tenant three business days to pay all past-due rent, late fees, utilities, and other charges or vacate. That three-day notice must be posted in a sealed envelope on the property’s door and delivered by any additional method the lease specifies. Only after the tenant fails to pay or vacate within that window can you go to court.
For other situations, like holdover tenancy or lease violations that are not about rent, the demand does not require a specific waiting period unless the lease imposes one. Document the date, method, and content of every notice; courts will not move forward without proof the demand was made.
Filing the Dispossessory
Once the demand is ignored or the three-day window has passed, the manager files a dispossessory affidavit. It can be filed in the Magistrate Court, State Court, or Superior Court of the county where the property sits, and most managers use Magistrate Court because it is the cheapest.18Justia. Georgia Code 44-7-50 – Demand for Possession Filing fees vary by county but are generally modest.
A sheriff or professional process server delivers the summons and affidavit. The tenant then has seven days from service to file an answer.19Georgia Legal Aid. How to File and How to Answer – The Dispossessory Process If the seventh day falls on a weekend or legal holiday, the deadline moves to the next business day. If the tenant answers, the court schedules a hearing. If not, the manager can request a default judgment.
After a favorable judgment, the court issues a writ of possession, enforceable no earlier than the eighth day following trial or default.19Georgia Legal Aid. How to File and How to Answer – The Dispossessory Process Only the sheriff can carry out the physical removal. Self-help evictions, including changing locks or shutting off utilities, are not permitted at any point.
Reporting Payments to Contractors
Starting with the 2026 tax year, property managers who pay independent contractors $2,000 or more during the year must file IRS Form 1099-NEC for those payments. The threshold was previously $600 and will adjust annually for inflation in $100 increments beginning in 2027.20Internal Revenue Service. Publication 1099 (2026) – General Instructions for Certain Information Returns The rule covers payments to unincorporated contractors for services like plumbing repairs, landscaping, and cleaning, whether the total came from one job or several smaller ones. Payments to corporations are generally excluded. Skipping required 1099-NEC filings brings IRS penalties and can also weaken the argument that the rental activity qualifies as a trade or business for deduction purposes.